As a trustee what are my responsibilities?
Frequently Asked Questions
Your responsibilities depend on the type of trust and the terms under which the trust is created. The settlor may have given instructions that trustees carry out various functions and trust law may impose further obligations. For tax purposes you are responsible for:
Notifying the Inland Revenue that tax is due within six months of the end of the tax year for which it is due where you have not received a tax return for the year.
Keeping records of the income and capital gains of the trust.
Completing and sending back any tax return issued to you.
Paying any tax due on the income or capital gains of the trust.
Informing the beneficiaries about how much income they have received or are entitled to from the trust in the tax year and tax credit or tax deducted.
Depending on the terms of the trust deed you can appoint a professional advisor such as an accountant or a solicitor to carry out some or all of these tasks. However if you do you are still responsible for ensuring all tax obligations a
Other related Frequently Asked Questions
- I have not received a return. Can you issue one to me?
- I have become a personal representative (executor). What do I do now?
- What is a settlement?
- What management expenses are deductible from trust income?
- How do I reclaim tax paid on my trust income?
- Capital gains have arisen in two separate years. Can I enter these details on one return?
- I have set up a trust. Does the tax office want to know?
- Do I need to send you a copy of the trust deed?
- What records should I keep?
- I need a tax return and reference number urgently, what do I do?
- I have just discovered that a trust has been in existence for a number of years. What should I do?
- What is a trustee?
- How do losses affect trustees?
- I have not received a return. Can you issue one to me?
- I have lost / do not appear to have received my return, can you send me a duplicate?
- By what date do I need to get my return back?
- I have received a return but there are no supplementary pages attached. Can you supply me with these
- Why does the Inland Revenue insist on the completion of trust returns in cases where all the income and gains are included in the personal tax return of the settlor?
- You have sent me a return but there is no tax to pay, do I need to complete it?
- I have made some capital payments to beneficiaries Do they have to go on my return and if so where?
- Capital gains have arisen in two separate years. Can I enter these details on one return?
- How do I declare income I received after the trust has ceased?
- Can I terminate a trust prematurely?
- When assets are distributed when a trust is wound up, is there a capital gain?
- As a trustee do I have to pay capital gains tax?
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- Is each trustee entitled to the trust annual capital gains exemption?
- What are post-transaction valuation checks?
- How do I get my valuations checked before making my return?
- How long will it take to get my valuations checked?
- What is taper relief?
- How do I calculate taper relief?
- What is hold-over relief?
- How do I calculate hold-over relief?
- What is a settlement?
- Is a settlement liable to capital gains tax?
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- How do I return trust management expenses?
- What management expenses are deductible from trust income?
- In what order should I deduct management expenses?
- Do trust offices deal with the deceased's final affairs?
- I have become a personal representative (executor). What do I do now?
- What is the administration period?
- When does the administration period end?
- How do I know what is administration period income and what is trust income?
- What happens when I wind up the estate?
- What rate of Income tax will I pay as personal representative?
- I have recently been appointed as an executor. What do I do about the deceased's tax?
- What is the administration period and when does it end?
- I have already paid tax to the Revenue. Why do I need to pay more?
- What counts as income of an estate?
- How do I pay tax on any income I receive?
- Can there be capital gains whilst I administer an estate?
- I am administering the estate of someone who has died. What deductions from capital gains are available?
- I am administering the estate of someone who has just died. Which tax office should I deal with?
- You have sent me a Trust return but the estate does not create a trust. Do I need to complete the return?
- You have sent me a return but there is no tax to pay. Do I still need to complete it?
- All the beneficiaries are charities. Will I be exempt from paying tax?
- The deceased's husband or wife is the sole beneficiary. Will I need to make tax returns?
- Do all of the executors need to sign tax forms?
- Why have you sent forms to me and not the other executor(s)?
- I have a solicitor/accountant dealing with the estate on my behalf. Can I send the forms on?
- I have now finished the administration of the estate. Do I need to wait until next April for the final year's tax return?
- How does the payment I received from an estate affect my tax liability?
- I have received a legacy from an estate. How does it affect my tax liability?
- How do I reclaim tax paid on my trust income?
- What is the difference between a legacy and the residue of an estate?
- How will I know how much estate income to enter on my tax return?
- The personal representatives received income that was treated as part of the estate for inheritance tax purposes. Can I, as beneficiary, claim tax relief for this?
- I am the beneficiary of an estate. Will I be liable to Capital Gains Tax?
- I have claimed my legal rights under a Scottish estate. How does it affect my tax?
- What do I have to do when a trust ceases to exist?
- What is the capital gains tax position of trustees?
- What types of trust are there and can I have a brief description of each?
- How does it affect my tax position if I get the whole or part of the residue of an estate?
- At what rate is capital gains tax charged?
- Do I have to go to the trouble of completing tax returns for the estate that I am administering?
- How long after becoming a trustee should I advise the Revenue?
- Which tax office should I contact?
- How do I settle the deceased tax affairs up to the date of death?
- How do I settle a student loan repayment?
- Should I contact the tax Office or will they contact me?
- Do trust offices deal with administration periods?
- Will I be liable to capital Gains tax?
- What reliefs are available to trustees?
- What is the annual capital gains exemption for a trust?
- What is the current rate of capital gains tax a trustee pays?
- What do I have to do when a trust ceases to exist?
- If a trust ceases is there any way of finalising the matter quickly?
- Can a trustee deduct management expenses from trust income?
- I have made some mistakes on my return, what do I do?
- How do I register a trust for tax?
- As a trustee what are my responsibilities?
- What tax rates apply to estate income?
- What is a tax pool?
